On average, property prices surrounding the nation’s power plants command 17% more than the wider areas they are located within, according to the latest property market analysis by GetAgent.co.uk.
A drive for renewable and sustainable energy sources seems to have energised house prices surrounding on-shore wind farms in England and Wales the most.
On average, the cost of living around a wind farm is £256,369, 53% higher than the wider area averages in which these plants are located.
House prices surrounding coal power stations are 19% higher than the wider area average; the second-largest power plant price premium.
Property prices surrounding natural gas (16%) and oil-diesel (11%) plants are also home to a double-digit difference between the surrounding property market and the wider area. At 1%, biomass plants are home to the lowest power plant house price premium.
With Britain recently registering its longest coal-free period on record our use of more traditional energy sources could be set to disappear. Should this happen, house price growth across sites home to a traditional fuel power plant could also start to lose power.
This may already be the case on an annual basis with house price growth down across all power station locations in the last year, except onshore wind farms (+1%).
Founder and CEO of GetAgent.co.uk, Colby Short, commented:
“A move away from traditional fossil fuels is great news for the environment and for our future. However, a coal-free landscape, in particular, could have a negative impact on the property market and local economies in towns presently home to a coal power station.
At the moment, property values surrounding all types of power station remain robust when compared to the wider areas. This is largely due to the demand for housing that this kind of major industry attracts.
While it’s unlikely that they will become completely obsolete, we’ve seen the detrimental impact of a declining industry in areas such as Aberdeen. House prices in the area have been hit hard due to the decline of the oil industry there.
Should the coal and other traditional energy industries supporting regional pockets of the UK property market follow suit, house prices could well fall into negative territory for years to come.
There are already signs that this is starting to happen with annual declines in house price growth across the board except for wind farms.”